There are two types of people in this world: the ones who know what is going on in Panama and the ones who do not. Which category are you in? Assuming you are reading this article for a reason, we will assume you fall into the latter category.

We just returned from our Panama investor exploratory trip this past week, which we hosted in Panama City after meeting the Ministry of Commerce, which manages the Investor Residency Program, ProPanama government investment arm, local bankers, and the largest and most established real estate developers in the Santa Maria, Costa del Este, and Punta Pacifica neighborhoods in Panama City.

If you are living in one of the big metropolitan cities in North America, or anywhere in the world as a matter of fact, you are going to want to hear what is going on in Panama and compare it to what you have or are receiving in your current city.

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If you are based in North America and watching this video, perhaps you are in Toronto, New York, Chicago, Denver, New Jersey, or California, just to name a few of the big cities. You will know what we are referring to when we talk about crime, security, public services, and more.

Based on where you live, you may have to lock your home and have extra security in case of break-ins, watch out for your car being stolen from your driveway, especially if you are in Toronto, pay millions of dollars for real estate on top of high taxes, and deal with public education going down the drain while private school tuition and post-secondary education keep becoming extremely expensive.

In most of these cities, you do not even have good weather, besides California, which unfortunately also experiences the side effects of wildfires and sits on an earthquake fault. And of course, no matter where you live, you probably have politicians talking non-stop on the airwaves 24/7, and you do not even know who to believe or what is going on.

Now, I would like to provide you with a realistic picture of what is going on in Panama City after we hosted our investor trip last week. Either sit down or hold on, because you may feel scammed by your current city or government after I explain what you are missing out on.

How Is the Weather in Panama?

Let’s start with the easy part: the weather in Panama is nice if you like tropical weather all year round. Since it is close to the equator, the temperature is always between 28°C and 32°C, which is approximately 82°F to 90°F for our American friends.

You can find cooler weather in mountainous regions such as Boquete, which is also a destination for many expats. It rains approximately 2 hours a day like clockwork during the rainy season, and a bit less during other seasons. Usually, it rains in the afternoon and starts and stops like clockwork. It freshens and cools the atmosphere, similar to Miami.

It is non-stop sunshine 365 days a year. There is only one season in Panama to enjoy.

How Are the Taxes and Banking in Panama?

You are probably paying income tax, property tax, and a whole bunch of taxes you probably do not even remember in your current country, province, or state.

Since Panama has a territorial tax regime, any income or funds you source from outside Panama are tax-free. In a nutshell, if your income sources are from outside Panama, there are no questions asked because you are 100% exempt from taxes, with no exceptions. If you are into crypto, then this is also music to your ears. If you have high income or are a pensioner, you do not need to worry about double taxation in Panama.

They also have a whole list of free zone options where you can incorporate your business if you want tax-free dealings beyond your personal income.

Panama has over 100 banks to support your financial needs. Whether it is private banking, corporate banking, or daily retail banking, you have very good options, probably more than you actually need. Opening a bank account is easy, whether you are a resident or non-resident. It is probably easier to open a bank account in Panama than in any other country I have visited or done business with, whether in Asia, the Middle East, Europe, or North America.

We visited MMG Bank during our trip, which is a large corporate and private wealth bank in Panama City, and Aliado Bank, which is a smaller local retail bank. Thanks to both banks for hosting us with our group of investors and partners.

No matter if you use these banks or the other 98+ banks operating in this country, you will understand what true banking is about.

Yes, it is easy to bank, transact business, and earn tax-free income in Panama.

How Is the Safety and Crime Rate in Panama?

It is safe in Panama City. People leave their condo doors unlocked. You can walk in the old city in the middle of the night and nobody will bother you. You are not going to have shootings, home invasions, or your car being stolen. This is a safe city.

With over 100 local and international banks and many expats living in this city, Panama cannot afford to allow crime to be out of control. All efforts have been made, and for good reason, to make this city super safe, friendly, and comfortable for you, your family, and your children.

How Is the Economic Stability in Panama?

The currency and economy in Panama are 100% based on the U.S. dollar. Your investment, whether it is in a bank account or real estate, is safe. You do not need to worry too much about currency fluctuations wiping out your wealth or exchanging money to local currency. Everything is in USD cash in the city and the business world.

Due to the Panama Canal, this country is also an important geographic hub for international maritime companies, trade, and investment, making it in the best interest of all superpowers in the world to make sure Panama stays autonomous and stable.

Since its independence in November 1903, Panama has experienced relative stability and continues to promote itself as an international hub for trade, investment, finance, and lifestyle.

Are People in Panama Friendly?

Everyone greets you on the street, on the trails, in the shops, or anywhere else you may be, even if they do not know you. Does this come as a shock? You will feel like you are living in a small happy village. Unfortunately, this does not exist anymore in many North American cities.

Is this normal? Maybe it is the sun, maybe it is the low taxes, maybe it is the stress-free lifestyle. Either way, it is a very positive vibe and will not make you feel out of place as an expat.

In Panama, people of different communities and religions even get along and respect each other. That is mind-blowing in today’s world.

How Are the Education Options in Panama?

Panama hosts some of the best international private schools, based on UK, American, French, Italian, or even Chinese language and curriculum options.

Whether you prefer your child to learn according to the UK curriculum at King’s College in Panama City or the American system at Balboa School, you are still paying lower private tuition fees than in the UK, Canada, or the USA. It is a no-brainer: safer schools, lower tuition, the same language, and the same quality education, or maybe even higher.

As an example, you can expect to pay a semester at King’s College in Panama City from $3,198 to $7,396 depending on the age of your child. These tuition rates were validated with the college and were correct at the time of publishing this article.

How Is the Healthcare System in Panama?

You have many healthcare facility options in Panama City, since many surgeons and doctors who work in Panama City practiced and were licensed in the U.S. before moving back to Panama. The medical system is definitely more efficient than Canada and more cost-effective than the USA.

Some of the best medical centres and hospitals in Panama City are Hospital Punta Pacífica, a prominent private hospital in Panama City known for its affiliation with Johns Hopkins Medicine International.

Additionally, “Hospital Sud” could also refer to Hospital San Fernando, located in Panama City’s Costa del Este area, another highly attractive area for expats working and living in the region.

Clínica Hospital San Fernando was the first hospital in Panama to receive JCI accreditation in August 2011. The hospital is affiliated with multiple U.S. hospitals, including Tulane Medical Center, Baptist Health South Florida, and three other children’s hospitals.

And if you are wondering about fertility clinics and flexible fertility regulations in Panama, it is very competitive and has many options for foreigners. One of the well-known fertility clinics dealing with international parents is Panama Fertility Clinic.

Children born in Panama receive automatic citizenship, and the parents can apply to receive permanent residency based on their child being Panamanian.

How Expensive Is Car and Home Insurance in Panama?

It is cheap, or at least cheaper than North American insurance premiums. Since there are no hurricanes, storms, or earthquakes in Panama, home insurance is very cheap.

Car insurance is also very competitive and cheaper than in most metropolitan regions in North America. You can expect to pay anywhere from $60 to $100 per month on car insurance depending on the model, year, value, and location where you reside.

Condo insurance can range from $1,900 to $5,000 per year depending on the size, location, construction type, and value of your condo. For a $1 million condo in Panama City, you may end up paying insurance premiums in the higher brackets, but for budget-friendly condos around the $200,000 to $400,000 range, you will be paying in the lower premium range.

How Is the Real Estate Market in Panama?

If you are living in one of the large metropolitan cities in North America or on any other continent, you cannot own a new house or luxurious apartment by the ocean with a budget below $3 million.

You can own a villa in Panama City, 15 minutes from the core, for $1 million. You can own an apartment in Costa del Este, one of the most sought-after neighborhoods, for $300,000 overlooking the ocean, with a mall within a 2-minute walk from the building and a hospital nearby. This is one of the most popular expat neighborhoods in all of Panama.

If you are not worried about the Golden Visa threshold of investing $200,000 or $300,000, depending on your nationality, to receive permanent residency in Panama, there are units available even for $150,000 to $250,000 depending on location, size, and facilities.

The answer to your question is yes, you can be a homeowner in a sunny, safe neighborhood by the water, in a brand-new building, with a $200,000 to $300,000 budget.

Is this possible in New York, Chicago, Los Angeles, Toronto, or where you currently reside? Is this possible in Miami or Marbella, Spain? If we have hit a nerve, then stick around for the rest of this article on the interesting features of living or investing in Panama.

The most expensive apartments or condos around the world are branded ones such as Fendi, Bvlgari, Ritz, and so forth. If you want to buy a Fendi-branded condo in New York, Miami, or Dubai, you are looking at a $10 million to $30 million price tag. In Panama, the same quality and even better facilities in the building can cost $1.5 million.

And if you do not fancy branded residential towers, there are new luxury towers and lower-priced units available as well.

If you like beach living, why not consider the Playa Bonita neighborhood, where Westin has new projects launching with existing units available in older towers. Playa Bonita is 15 minutes from the city core, beachfront, surrounded by jungle, and offers resort-style living.

A new golf course is being developed right next to this resort-style living neighborhood. We work very closely with this developer and have access to both existing units and the upcoming project at discounted prices for our clients.

Or perhaps you like the old city in Panama, Casco Viejo, which is now a UNESCO heritage site dating back to the 1600s. The whole neighborhood is now under renovation and development, and you can find brand-new NYC-style lofts for under $300,000 in gorgeous boutique-style towers in the old city, complete with a swimming pool, rooftop terrace, sauna, event space, and full-time reception and concierge.

Check out some of our photos below. We have access to exclusive units in this building which are not listed on the market, and we have the full breakdown of maintenance and property management fees offered by the developer.

The advantage with this project is that it has a 3-year property tax exemption and a short-term rental license for the whole building. It is a turnkey offering by the developer, no matter if you want to reside there full time, rent it out, use it for investment purposes, or keep it as your casual getaway.

So, you think this is all too good to be true and maybe just a marketing gimmick? It is all fact, and we have seen it with our own eyes during our recent Panama investor exploratory trip.

How Is the ROI on Rental Income for Your Property in Panama?

The bare minimum is 5% in Panama for a condo unit. You can even achieve 8% per annum returns on your property if you opt for short-term rental options.

Yes, your building has to have a short-term rental license, but many buildings do. You can check with our developers in advance or ask us to let you know which ones do and which ones do not.

Developers create buildings and apply for the whole building’s short-term rental permit in advance, so it is ready for you to utilize whether you prefer to use it for yourself or rent it out.

The major developers we work with, the top 3 in Panama City, also have their own in-house property and rental management services for you to use at between 10% to 20% of the income you earn, depending on whether it is short-term or long-term rental income.

And if you are worried about taxes on your rental income, the reality is that you can easily offset rental income against your costs to operate and own the property. The tax rules are very relaxed in Panama on rental income for expats. So far, I have not met any expats who actually paid anything on their rental income.

How Do I Apply for the Panama Qualified Investor Program, Also Known as the Golden Visa?

By now, you must be wondering how you can move to Panama on permanent residency status, or alternatively, invest and casually visit when you want to.

Both options are super easy. Here are some facts about Panama and the Qualified Investor Program that you need to know as of April 2025:

• Anyone can obtain permanent residency in Panama within less than 90 days by investing in any type of real estate in the country. It could be office, commercial, residential, or even bare land. Land is cheap in Panama relative to its infrastructure, safety, and USD-denominated economy. It is the fastest Investor Permanent Residency Program in the world. If you think Dubai is faster, then you need to differentiate between temporary residency and permanent residency, which Panama offers but Dubai does not.
• You do not need to apply for permanent residency or complete an immigration process if you just want to invest in Panama, create a business, own real estate and rent it out, buy land, open a bank account, and so on.
• The minimum investment in real estate is either US $200,000 or US $300,000 depending on your citizenship to obtain temporary or permanent residency. If you are from the friendly nations list, such as the USA, Canada, Europe, South Africa, Japan, Singapore, or other regions, you can invest $200,000 in real estate. If you are not from a friendly nation, then you will need to invest $300,000 in any freehold real estate property to obtain permanent residency. You only need a bank statement showing your funds, a police check, and a valid passport to apply.

This friendly nations $200,000 investment threshold for the Qualified Investor Program is available to citizens of countries that maintain close economic and professional ties with Panama. These countries are:

• The Qualified Investor Program is open to all nationalities, with no exceptions.
• The residency is renewable every year and can be renewed even if you are outside the country.
• The residency requirement is 1 day every 2 years to maintain your residency while you hold on to your investment. After 5 years, you can become eligible for Panamanian citizenship.

The whole process for the Qualified Investor Residency Program takes approximately 90 days to complete, allowing the investor and their family to enter Panama to collect their permanent residency cards.

You can reach out to our office if you are reading this article significantly later than the publishing date and would like our latest Panama Residency & Investor Guide with all current policy and regulation updates.

If you still think Panama is weird, unsafe, slow, or unstable to invest in, do business in, or move your family to, I hope I have given you a serious wake-up call.

This is one of the hidden gems in Central America, and we hope you consider it in your Plan B or next potential move for your business, investment, or family life.

Of course, you can reach out to us. We have a network of service providers, developers, and bankers ready in Panama to support our clients. From VIP airport pickup service to making sure you stay at the right hotel, see the right developers and projects, and meet the right bankers, we have the right resources to support your residency and investment in Panama.

Keep in mind, half of our team speaks Spanish and is from that part of the region, so it is easy for us to handle your entire process from beginning to end, with local support in Panama and North America.

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